Govt Initiatives, Increased Investments Set To Surge Employment Over The Decade: CEA

The CEA said, "This trend we hope will continue in the future, as indicated by the robust gross value added growth in manufacturing and construction sectors"

Chief Economic Advisor (CEA) V Anantha Nageswaran highlighted that the numerous initiatives undertaken by the government, coupled with increasing investments, are poised to generate more employment opportunities over the course of the upcoming decade. He also emphasised that the final decade of the century witnessed a notable downturn in capital formation within the economy, alongside a slowdown in credit growth, underscoring the need for proactive measures to address these challenges, while speaking at an event in Delhi on Tuesday.

"Hopefully, those things are a thing of the past. Non-food credit growth is now running close to 20 per cent, balance sheets of companies and banks are in good shape and hiring (is showing improvement)," Nageswaran said.

Referring to data from the fiscal year 2021-2022, he stated that there was a decrease of 15 lakh jobs in the agriculture sector, while both manufacturing and services sectors saw an increase of 37 lakh jobs each. Additionally, the construction sector contributed to the job market by generating 19 lakh jobs, according to his remarks.

The CEA said, "This trend we hope will continue in the future, as indicated by the robust gross value added growth in manufacturing and construction sectors.”

While speaking about diverse government endeavours aimed at fostering employment opportunities, Nageswaran highlighted several key initiatives. These include initiatives such as skill development programs, the government's provision for a 12 per cent employer contribution towards the Employees' Provident Fund Organization (EPFO), the implementation of the New Education Policy, and significant structural reforms in human development.

In addition to these measures, he mentioned that the government has directed investments towards enhancing physical infrastructure to bolster industrial and manufacturing expansion, thereby fostering job creation within these sectors. Furthermore, efforts have been made to revitalise the financial sector, including banks and non-banking institutions. 

Discussing areas requiring enhancement, he emphasised the necessity of streamlining regulatory and tax policies to alleviate burdensome, cumbersome, coercive, and predatory implementation regimes. He also noted that despite progress, closing a business in India remains challenging despite progress.